China Plans $142 Billion Injection to Boost Economy, Bitcoin ETF Demand SoarsInvestor demand for Bitcoin ETFs has surged as China contemplates injecting up to $142 billion into its state-owned banks to buoy its struggling economy. Meanwhile, Ethereum and WorldCoin are both experiencing strong performance, surging past $2,500 and 14% respectively
China Plans $142 Billion Injection to Boost Economy, Bitcoin ETF Demand Soars
Investor demand for Bitcoin ETFs has surged as China contemplates injecting up to $142 billion into its state-owned banks to buoy its struggling economy. Meanwhile, Ethereum and WorldCoin are both experiencing strong performance, surging past $2,500 and 14% respectively.
According to SoSoValue, Bitcoin ETFs saw net inflows exceeding $100 million for the second consecutive day, marking five consecutive days of positive inflows. CryptoQuant data reveals that the 30-day net holdings for ETF tracking indicators have turned positive for the first time, indicating an increasing trend of accumulation.
The People's Bank of China (PBOC) earlier this week decided to reduce reserve requirement ratios and lower repurchase rates, a move considered to release liquidity to stimulate economic growth. China is considering injecting a massive RMB 1 trillion (approximately $142 billion) into its main state-owned banks to further boost the economy.
Concurrently, Ethereum (ETH) climbed above $2,500, even with a 1.3% decline on the day, marking a week-on-week gain of 8%. Data shows that spot ETHETFs witnessed daily net inflows of $43 million, achieving positive net inflows for the second day. PrestoResearch attributes the surge in Ethereum gas fees to increased network activity, suggesting ETH's resilience compared to BTC following the Federal Reserve's 50 basis point rate cut.
Sam Altman-backed WorldCoin's WLD token appreciated by 14% in the past 24 hours, emerging as one of the rare winners in the broader cryptocurrency market. The company announced on Wednesday its launch of verification services in Poland, Malaysia, and Guatemala over the past week, drawing in more users and bolstering the project's foundation. This surge coincides with management changes at Altman's other company OpenAI and its transition from a non-profit to a for-profit benefit corporation. WLD tokens historically tend to follow developments at OpenAI, as crypto traders may perceive a close connection between the two entities.
Bitcoin (BTC) traded slightly above $63,000 during the first part of the Asian trading session on Thursday, dropping 1.4% but exhibiting a 2% week-on-week gain due to continued positive inflows into BTC exchange-traded funds (ETFs).
Overall, the market exhibits growing interest in cryptocurrencies, particularly fueled by China's economic stimulus measures. The continued net inflows into Bitcoin ETFs signify strengthening investor confidence in the asset, while the robust performance of Ethereum and WorldCoin reflects emerging opportunities within the broader cryptocurrency market.
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